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Wednesday, March 4, 2015

Overreaction Affects Your Future

By Evan Wise

Management One™

Overreaction Affects
Your Future

Lately we hear a lot about overreaction and how it affects
our decisions.Too many people overreact
when faced with a deadline or a big unexpected challenge. Often those decisions
made in haste affect many decisions for a long time as the cascade effect
creates a domino effect on the business for a long time.

On the other hand, overreaction has been responsible for
some amazing things. When the Soviet Union launched a grapefruit sized
satellite called Sputnik into space, the U.S. overreaction created momentum
that led us to the moon and caused us to revamp our math and science education
efforts that positively affected two generations of students. Sputnik only had
the ability to send a ping and it fell to earth a short time later. Voyager, our overreaction is still orbiting the
earth. Sometimes overreaction can have a
positive effect so proper scrutiny of reactions is important.

Gather Data to Manage
Overreaction

In business we often overreact to fads or intuitive
thinking. We “hear” about a competitor taking action so we launch into
defensive or offensive actions to make sure we don’t lose ground. The
more information we have and data we can review, the more likely we are to make
the logical and rational decision.The
more information we have about trends, vendors and the direction of our
industry, the more likely we are to make the right decisions.That is why the accuracy and efficiency of
the POS system with the right analytical tools to help us stay on course is
important.A trade association gives us
the broad perspective to test our theories and ideas against a robust
collection of vendors, competitors and colleagues.

Information Leads to the
Best Decisions

The old adage of carpenters that cautions “measure twice and
cut once”, serves business owners well. As business managers we must listen
before jumping to a conclusion or worse, a decision!Understanding and practicing effective
listening skills are crucial, especially when stress levels are high and
demands for a decision are most urgent.A valid problem solving template can make sure you are addressing an
issue that is truly significant. It can make certain you gather the data to
validate its priority.Taking time to
identify the causes can help you focus on the underlying issues. Finally,
getting all the parties together to identify the right solution makes all the
difference between action and the right actions.

Predict the Future and
Make It Better

It is easier to trace back from the outcome to the source of
the problem.It seems like it should have
been obvious yet no one saw what would happen!The real key is to be able to see the outcome by piecing together the
facts and information available to forecast what will happen. Then the
challenge is to make the right decisions to guide the path to a more desired
outcome. Economists, pundits, consultants and financial planners are paid a lot
to be able to do that. Whenever you have a better idea of what will happen in
the future, you can make better decisions today to be prepared for that future.

Take Action to Find
The Right Path

As a manager, it is up to you to lead the team to
success.The quickest decisions don’t
often get your team across the goal line.The best decisions are what wins in business. Often finding the right
guidance is the key to greater success.When
you are on the right path, stick with it through the ups and downs. When you
have a great consultant, follow his or her advice and keep that expert working
for you for the long haul.If you are
working with a consultant who is not able to lead you to a more profitable and
successful future it is time to start looking around to upgrade. Make the right
decisions for the right reasons and don’t overreact to what just happened!